UL Water Midstream Announces New Strategic Investment Commitments

HOUSTON, Texas -- July 25, 2019 -- UL Water Midstream LLC (“ULWM”) today announced that it has added a new strategic equity partner (the “Strategic Partner”) that will provide further alignment with University Lands along with additional capital to fuel the continued growth of ULWM.  The original ULWM partners, H2O Midstream LLC and Layne Water Midstream LLC will retain joint control of ULWM with the strategic and financial support of its sponsors, EIV Capital LLC, Genesis Park LP, Post Oak Energy Capital LP, along with the new Strategic Partner.

In January 2019, ULWM signed a long-term contract with University Lands to serve as the exclusive preferred water services provider on 167,000 acres located in Ward, Winkler and Loving counties in the Delaware Basin to develop and operate water infrastructure on the University Lands acreage.  University Lands manages the surface and mineral interests of 2.1 million acres of land across nineteen counties in West Texas for the benefit of the Permanent University Fund. 

Stephen McNair and Byron Bevers, the President of UL Water Midstream and Vice President of UL Water Midstream, respectively, jointly stated, “This new strategic investment facilitates ULWM growth organically and through acquisitions.  The support of all of our investors demonstrates the importance of the development of water infrastructure across the Delaware Basin.” 

About UL Water Midstream

UL Water Midstream was formed to provide full-cycle water midstream services to oil and gas producers across University Lands acreage in the Delaware Basin. ULWM is a partnership of H2O Midstream, Layne Water Midstream and the new Strategic Partner.  As the preferred water service provider for University Lands on it 167,000 acres in Ward, Winkler and Loving counties, ULWM is uniquely positioned to provide efficient and creative solutions to the water needs and demands of producers on that acreage.  ULWM is led by President Stephen McNair, an industry veteran who headed the development of Pioneer Natural Resources’ water business before joining H2O Midstream as EVP and Chief Development Officer.  For more information, visit www.ulwatermidstream.com.

About Layne Water Midstream

Layne Water Midstream ("LWM") is a full cycle water midstream business providing upstream oil and gas companies with water sourcing, disposal and recycling services in the Delaware and Midland Basins.  Anchored by an exclusive long-term contract with the State of Texas General Land Office and an experienced water management team, LWM operates significant source water, water transportation and produced water management infrastructure and is committed to further growth to support its upstream customers in the Delaware and Midland Basins.  LWM is a portfolio company of Post Oak Energy Partners LP and Genesis Park LP. For more information, visit www.laynewatermidstream.com.

About H2O Midstream 

H2O Midstream was founded on the vision that water should be treated as a commodity, not a waste, and partners with producers, landowners, and other stakeholders to improve the efficiency, reliability and safety of water operations while lowering costs across the entire value chain. Led by an executive team with over 150 years of collective midstream experience, H2O Midstream currently owns and operates the Permian's only truck-free, third-party produced water hub and pipeline network consisting of 1,000,000 barrels of storage and 290,000 barrels per day of permitted disposal capacity from 14 owned and third-party disposal wells, all interconnected via 150 miles of pipeline tied to seven producers.  H2O Midstream is a portfolio company of EIV Capital LLC. For more information, visit www.h2omidstream.com.

Contact:

UL Water Midstream
Stephen McNair, President
stephen.mcnair@ULwatermidstream.com
214.263.3780

Byron Bevers, Vice President
byron.bevers@ULwatermidstream.com
832.472.8650

Kelly Kimberly, Sard Verbinnen & Co
kkimberly@sardverb.com
832.680.5120

Post Oak Energy Capital and Genesis Park Lead $200 Million Capital Commitment to Layne Water Midstream Holdings, LLC

FOR IMMEDIATE RELEASE

For more information contact: 
Kelly Kimberly 
Sard Verbinnen & Co.
832.680.5120
kkimberly@sardverb.com

Post Oak Energy Capital and Genesis Park Lead $200 Million Capital Commitment to Layne Water Midstream Holdings, LLC

(Houston) – April 11, 2019 - Post Oak Energy Capital, LP (“Post Oak”) and Genesis Park, LLC (“Genesis Park”), through investment partnerships each company separately manages, today announced that they have led a $200 million equity commitment to Layne Water Midstream Holdings, LLC (“LWM”). Post Oak and Genesis Park acquired LWM from Granite Construction Incorporated (“Granite”) with an additional commitment to continue to fund the company’s growth. The LWM management team invested alongside Post Oak and Genesis Park.

Layne Water Midstream, based in The Woodlands, Texas and in Midland, Texas, is a full cycle water midstream business providing upstream oil and gas companies with water sourcing, gathering, disposal and recycling infrastructure and services in the Delaware and Midland Basins. LWM began as a subsidiary of Layne Christensen Company, a 136-year-old water management, infrastructure and drilling company that merged with Granite in 2018.  LWM is led by Michael Anderson, an executive with significant experience with public and private water infrastructure and energy midstream companies and is supported by a growing team of 19 full-time employees.

LWM began operations in the Delaware Basin in 2017 and has rapidly grown its water infrastructure footprint.  LWM has over one million barrels of daily water sourcing, gathering and disposal capacity online, under construction and in various stages of the permitting process.  LWM has also formed water infrastructure partnerships with the State of Texas General Land Office on its 88,000 acre position in Reeves and Culberson counties and with the State of Texas University Lands organization on its 160,000 acre position in Loving, Ward and Winkler counties.  LWM has a diverse customer base that is in active development on some of the most prolific oil and gas acreage in the United States, which is further supported by multiple long-term commitments and acreage dedications to LWM.  LWM is focused on providing reliable, safe and environmentally conscious solutions to its growing producer customer base and continuing to work with its partners to accretively grow its water infrastructure footprint.  

Frost Cochran, Post Oak Managing Director, commented, “We are thrilled to be able to build on our existing knowledge and relationships in the Permian to support LWM in the next critical phase of infrastructure buildout for the basin.”  He continued, “Through our upstream investments in the Permian and our crude infrastructure buildout at Oryx Midsteam, we recognized the immediate and growing need for integrated water infrastructure and are fortunate to be partnering with the experienced executives at LWM.”

Michael Anderson, LWM’s Chief Executive Officer, added, “The LWM team is looking forward to further growth with Post Oak, Genesis Park, our landowner partners and our customers throughout the next phase of oilfield water management.”

Paul Hobby, Genesis Park Partner, noted, "Water management has become an important focus in the oilfield and beyond. At Genesis Park, we are pleased to partner with Post Oak Energy Capital and Layne Water Midstream to bring infrastructure and technology to provide innovative solutions to this growing opportunity."

About Post Oak Energy Capital:

Post Oak, which was established in 2006, is a Houston-based private equity firm primarily focused on making domestic investments in the upstream, midstream and oilfield services sectors of the energy industry. Post Oak seeks to identify outstanding oil and gas entrepreneurs and management teams with well-defined business plans that also possess a demonstrated track record of creating accretive value for shareholders. www.postoakenergy.com

About Genesis Park:

Genesis Park is a Houston-based lower middle market buyout firm founded in 1999 that focuses on investments in the southern U.S. The firm is actively involved in portfolio companies and places a strong emphasis on solving operational problems and professionalizing management and systems. The Genesis Park partners have worked together for more than 20 years, investing and building businesses in information technology, software, energy services, telecommunications, financial and healthcare industries. The team’s deep Texas roots, operating experience and extensive network gives it unique advantages to bring to portfolio companies. www.genesis-park.com

About Layne Water Midstream:

Layne Water Midstream ("LWM") is a full cycle water midstream business providing upstream oil and gas companies with water sourcing, disposal and recycling infrastructure and services in the Delaware and Midland Basins.  Anchored by exclusive long-term contracts with key customers, landowners, the State of Texas General Land Office and the State of Texas University Lands organization, LWM operates significant source water, water transportation and produced water management infrastructure and is committed to further growth to support its upstream customers in the Delaware and Midland Basins.  www.laynewatermidstream.com

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H2O Midstream and Layne Water Midstream Joint Venture Selected as Exclusive Provider of Water Services on University Lands in the Delaware Basin

HOUSTON, TX, January 22, 2019 – H2O Midstream and Layne Water Midstream today announced the signing of a long-term contract with University Lands to jointly serve as the exclusive preferred water services provider on 167,000 acres located in Ward, Winkler and Loving counties in the Delaware Basin. H2O Midstream and Layne Water Midstream have formed a joint venture known as UL Water Midstream LLC (“ULWM”) that will develop and operate water infrastructure on the University Lands acreage.

Under this agreement, ULWM will source groundwater and gather, store, transport, recycle, and dispose of produced water from oil and natural gas wells. H2O Midstream and Layne Water Midstream were selected over other potential water service providers based on their integrated midstream approach, their proven execution capabilities across the full water value chain, and track records of bringing reliable, sustainable, and economic solutions to Permian-focused oil and gas producers operating in both the Midland and Delaware basins.

The agreement with University Lands includes an incentive sharing structure that encourages the rapid development of full-cycle water midstream infrastructure with a long-term goal of reducing water logistics costs for operators, increasing revenue for the Texas Permanent University Fund, reducing the environmental impact of water handling, and enhancing the sustainability of University Lands acreage. Producers that enter into long-term contracts with ULWM are expected to realize lower costs and improved flow assurance by leveraging ULWM’s full-cycle water midstream platform, proven operating capability, and advantaged cost structure.

Mark Houser, the CEO of University Lands, stated, “Our goal is to drive the adoption of a more economic and holistic approach to oilfield water management. The choice is the operator’s, but we believe that there are economies of scale and benefits to connected systems, and that with time, these benefits will become more and more evident. The key is to find reliable third-party service providers that operators can trust, like H2O Midstream and Layne Water Midstream. The University Lands and UL Water Midstream agreement is a win-win-win benefitting University Lands, the oil and gas industry, and the environment.”

About Layne Water Midstream

Layne Water Midstream (“LWM”) is a full cycle water midstream business providing upstream oil and gas companies with water sourcing, disposal and recycling services in the Delaware and Midland Basins. Anchored by an exclusive long-term contract with the State of Texas General Land Office and an experienced water management team, LWM operates significant source water, water transportation and produced water management infrastructure and is committed to further growth to support its upstream customers in the Delaware and Midland Basins. For more information, visit www.layne.com/midstream.

About H2O Midstream

H2O Midstream was founded on the vision that water should be treated as a commodity, not a waste, and partners with producers, landowners, and other stakeholders to improve the efficiency, reliability and safety of water operations while lowering costs across the entire value chain. Led by an executive team with over 120 years of collective midstream experience, H2O Midstream currently owns and operates the Permian’s only truck-free, third-party produced water hub and pipeline network consisting of 1,000,000 barrels of storage and 265,000 barrels per day of permitted disposal capacity from seven owned and six third-party disposal wells, all interconnected via 150 miles of pipeline tied to seven producers.

H2O Midstream is funded via a private equity commitment from EIV Capital and co-investments from several of EIV’s institutional partners collectively representing more than $70 billion in assets under management. For more information, visit www.h2omidstream.com.

Contact:

Layne Water Midstream
Byron Bevers, (832) 472-8650

H2O Midstream
Darrell Bull, (918) 688-8892